United Bank Limited (UBL), one of the largest commercial banks in Pakistan, has successfully concluded the transaction for the sale of its shareholding in United National Bank Limited (UNBL), after obtaining all the regulatory approvals.
The listed company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.
“The transaction for the sale of UBL’s shareholding in United National Bank Limited as approved by the shareholders’ of UBL in 65th Annual General Meeting of UBL held on 18 March 2024, after obtaining all the regulatory approvals, has been concluded,” read the notice.
Last year in September, the board of directors of United Bank Limited (UBL) made significant strategic decisions regarding its future operations and approved the “Indicative Offer” received from Bestway Group (BG) to acquire UBL’s entire 55% shareholding in UNBL UK, a subsidiary. “The Bestway Group has acquired 50.1% shares upfront at a price of 25.49 million pounds or USD32.6mn with an option to purchase remaining 4.9% shares within 36 months of the initial acquisition of 50.1% on the same price, terms and conditions,” said Arif Habib Limited (AHL) in a note.
“This would result in capital gain of Rs7.2 billion or Rs5.87 per share, on disposal of UNBL UK stake on unconsolidated basis. “The disposal of this investment would reduce the Consolidated Risk Weighted Assets of UBL by Rs339.4bn and increase the Consolidated Capital Adequacy Ratio of the bank by over 200bps, according to the bank’s financials,” it added.
